|Risk Simulator SCM|
Supply Chain risks simulation and analysis.
This new and reliable approach allows:
Eurobios Risk Simulator provides companies the capabilities to model the Supply Chain under risks, globally or by sub-entities, in order to simulate all possible combination of risks and prevent serious shortfalls to its performance.
Supply Chain performance degradation almost always comes from a combination of several unrelated risks and not from a few obvious risks that are commonly expected and controlled by the company.
Thus, as a matter of fact, traditional statistics-based approaches to assess risk and avoid catastrophes are limited and do not allow understanding today’s modern and interacting organisations. But why?
Because they are economic theory driven: preset distributions for risk are assumed and used to define purely mathematical relationships, and because they try to describe a past –often an obsolete past – situation of the company whereas today’s Supply Chains and their environment change rapidly.
As a matter of fact, real challenges with conventional modeling approaches to Supply Chain risks are as follows:
Risks are highly complex and cannot be adequately captured by linearly driven mathematical models,
Risks cascade through any Supply Chain. Their events interact synergistically with each other and with Supply Chain business and technical processes. The risk impacts are thus difficult to globally assess,
Risk impacts are more easily quantified at the local knowledge level than at the global one.